smes & entrepreneurship 2007 entrepreneurial solutions to insoluble problems

SMEs & Entrepreneurship 2007

Entrepreneurial Solutions to Insoluble Problems

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1 Introduction

2 Our Common Future + 20

3 Pressure wave 4

4 Government’s roles

5 Conclusion

1 Introduction

< 20 years > Wave 4 Government ConclusionsIntroduction

Who we are

< 20 years > Wave 4 Government ConclusionsIntroduction

3Ps

Public Relations, Legal Advisors

Environment Managers, Project Planners

Process and Product Design, Marketing

CEOs, Investor Relations, Boards (e.g. NEDs)

CFOs, Entrepreneurs, Investment Bankers, VCs

Where we focus

2 < 20 years >

Wave 4 Government ConclusionsIntroduction < 20 years >

Brundtland Commission, 1987

– Sustainable development

– “Interlocking crises”(e.g. peace, security, environment)

– “Security must be sought through change”—build a future that is “more prosperous, more just, more secure”

Wave 4 Government ConclusionsIntroduction < 20 years >

Wave 4

– Wave 1: compliance—government regulates

– Wave 2: corporate citizenship—government marginalised

– Wave 3: focus on MNCs; CC goes global; stalled 9/11/2001—government obsessed by ‘security’

– Wave 4: mainstreaming, creative destruction, new sources of transformative innovation, governments catalyse and incentivise

Wave 4 Government ConclusionsIntroduction < 20 years >

Social enterprise

– Social entrepreneurship ‘on a roll’

– Potential for breakthrough solutions ‘considerable’

– Money ‘main headache’

– Appetite to partner with business

– Role for ‘social intrapreneurs’

– For ‘real system change,’ focus on government and public policy

3 Insoluble problems

Trends ConclusionsIntroduction Waves Cases

Wal-Mart

Government ConclusionsIntroduction < 20 years > Wave 4

Achilles Heel: oil at ~$100 pb/’Peak Oil’

World’s energy needs 50% greater by 2030 (IEA reference scenario)

Developing countries accounting for 74%, China + India alone for 45%

OPEC’s share of oil production from 42% to 52%

PetroChina, sovereign wealth funds

Economic insecurity

Government ConclusionsIntroduction < 20 years > Wave 4

Warming of 4 degrees warming by 2100 > “significant extinctions”, IPCC

Fossil fuels are predicted to account for 84% of increase in global energy consumption by 2030

Emissions of carbon dioxide will jump by 57%, 2005-2030

China becomes world’s biggest emitter this year, India the third largest by 2015

Environmental insecurity

Government ConclusionsIntroduction < 20 years > Wave 4

Changing climate of opinion(GlobeScan for BBC World, 22,000 respondents, 21 countries)

Government ConclusionsIntroduction < 20 years > Wave 4

Action Needed on Climate Change

22,000 respondents, 21 countries, 2007

Government ConclusionsIntroduction < 20 years > Wave 4

Political and human rights impact of stronger OPEC countries

Impact of ‘Peak Oil’ and instability of e.g. China

Refugees and migration

Demographics, e.g. ageing

3 billion new people by 2050

Social insecurity

4 Government

ConclusionIntroduction < 20 years > Wave 4 Government

Office of Social Entrepreneurship

– Post Hurricane Katrina …

– State/social services overwhelmed

– Unprecedented flow of federal/charitable funds

– Strong demand for meaningful results

– New Orleans ‘Social Entrepreneurship Empowerment Zone’

– NC: low profit, limited liability partnerships (L3C)

ConclusionIntroduction < 20 years > Wave 4 Government

Elsewhere …

Small Business Innovation Grants: all US federal agencies spending more than $100m set aside minimum 2.5% for SBIRs

California: Rural Economic Vitality Project, stimulating green building technology, renewable energy, e.g. biofuels

Fast Company: Social Capitalists Award

Ashoka, Schwab and Skoll Foundation awards + events

Roundtables on public policy priorities—and solutions

Promotion of public and private sector partnering

ConclusionIntroduction < 20 years > Wave 4 Government

What social entrepreneurs want

– Improve tax incentives

– Innovative financial instruments to engage banks and pension funds

– Boost relevant education and training

– Remove barriers

– Retune purchasing criteria

Introduction < 20 years > Wave 4 Government Conclusions

Run for office?

5 Conclusion

Introduction < 20 years > Wave 4 Government Conclusions

Gore on climate challenge

‘What we are going to have to put in place is a combination of the Manhattan Project, the Apollo Project and the Marshall Plan, and scale it globally.’

Introduction < 20 years > Wave 4 Government Conclusions

Scaling up

Introduction < 20 years > Wave 4 Government Conclusions

Redesigning the system

Introduction < 20 years > Wave 4 Government Conclusions

Unleashing entrepreneurship

Thank you.

Email:

elkington@sustainability.com

Websites:

www.sustainability.com

www.johnelkington.com